Organizational Transformation During Institutional Upheaval

Abstract

Organizational transformation in the transition economies of Central and Eastern Europe is qualitatively different from that observed in the West because of concomitant upheaval in the institutional context. Drawing on organizational change theory, organizational learning theory, and institutional theory, I suggest an inverted U-shaped relationship between institution-level change and transformative organizational change. By integrating three theoretical perspectives in the conceptual framework of this article, I more fully explain organizational transformation in a variety of institutional contexts.